ASML Projects 2023 Net Sales Growth Of More Than 25%

(RTTNews) - ASML Holding NV (ASML) has published its 2022 annual reports. The company achieved another record year for sales in 2022, driven by a strong increase in demand from customers across all technologies. ASML saw strong demand in both the Logic and Memory markets for the period. The company noted that its ability to meet customer demand was impacted by several issues in 2022, including the war in Ukraine and the aftermath of COVID-19.

Fiscal 2022 gross profit was 10.7 billion euros compared to 9.8 billion euros, last year. The company said its gross profit increased, mainly due to the volume increase in DUV, NXE:3600D value proposition and continued growth in installed base business. The overall gross profit, as a percentage of total net sales, decreased from 52.7% in 2021 to 50.5% in 2022, due to fast shipments, the current strong inflationary effects relating to increasing material, freight and labor and the increased factory costs required to ramp up production and keep up with customer demand.

Net income in 2022 was 5.62 billion euros, or 14.14 basic per share, compared with net income of 5.88 billion euros, or 14.36 basic per share, last year.

Fiscal 2022 total net sales increased by 13.8% to 21.2 billion euros, reflecting an increase in net system sales of 13.0% to 15.4 billion euros, and an increase in net service and field option sales of 15.8% to 5.7 billion euros. The company's net bookings stand at 30.7 billion euros for the year 2022.

ASML stated that the strong net income and continued working capital improvement initiatives resulted in net cash provided by operating activities of 8.5 billion euros in 2022.

For the first quarter, the company expects: total net sales between 6.1 billion and 6.5 billion euros, and gross margin of between 49% and 50%.

For 2023, the company projects net sales growth of more than 25%.

"We are increasing our output capability for EUV as well as DUV," Roger Dassen, CFO, said.

The company noted that, in the near term, fear of a recession could impact the demand for semiconductors.

ASML believes it has an opportunity to reach annual sales of between approximately 30 billion euros and 40 billion euros in 2025, with a gross margin between approximately 54% and 56%. For 2030, the company believes it has an opportunity to reach annual sales of between approximately 44 billion euros and 60 billion euros, with a gross margin between approximately 56% and 60%.

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